By: Katherine Muniz Jul 09, 2015

Everything You Need to Know About State Laws and Overtime

Being in the business of time tracking, we know how important it is to abide by labor laws. That’s why we make it easy for you to customize your policies with rules that correspond to your circumstances. Whether it be creating policies that work with new sick leave laws or setting up typical policies like vacation, when it comes to time off, we have you covered.

However, what about overtime? While federal law calculates overtime on a weekly basis, some states calculate overtime on a daily basis. To give a brief overview, according to the federal overtime provisions contained in the Fair Labor Standards Act, overtime is owed when an employee exceeds working 40 hours in a work week. Many employers include other types of hours in their 40-hour calculations, such as holiday, vacation time, and sick day pay. However, this is strictly up to CBA, union agreement, or company policy.  

Not all employees are entitled to overtime, but most are. However, many states have their own laws on what constitutes overtime, and not all states operate on a weekly schedule. When this is the case, employees are covered by whichever law is more protective of their rights.

As a helpful resource, we are sharing the following table provided by Employment Law Firms that describes the overtime laws of each state and the covered employers. (For more detail, we’ve hyperlinked each state to its official labor laws page so you can always have the most current information available.) While you probably already know your local rules, you might just learn something new:

AlaskaYes, after eight hoursYes, after 40 hoursEmployers with at least four employees; commerce or manufacturing business
ArkansasNoYes, after 40 hoursEmployers with at least four employees
CaliforniaYes, after eight hours; after 12 hours, employees earn double timeYes, after 40 hours. On seventh work day of the week, employees earn regular overtime for the first eight hours, double time after that 
ColoradoYes, after 12 hours (in one workday or 12 consecutive work hours)Yes, after 40 hoursRetail, service, commercial support service, food and beverage, and health and medical industries
ConnecticutNoYes, after 40 hours. For seventh consecutive workday, restaurant and hotel restaurant employees must be paid time-and-a-half. 
District of ColumbiaNoYes, after 40 hours 
HawaiiNoYes, after 40 hours. Dairy, sugarcane, and seasonal agricultural workers get overtime after 48 hours. 
IllinoisNoYes, after 40 hoursEmployers with at least four employees.
IndianaNoYes, after 40 hours 
KansasNoYes, after 46 hours 
KentuckyNoYes, after 40 hours 
MaineNoYes, after 40 hours 
MarylandNoYes, after 40 hours. Employees at bowling alleys and residential employees caring for the sick, aged, intellectually disabled, or mentally ill in institutions other than hospitals earn overtime after 48 hours; agricultural workers earn overtime after 60 hours. 
MassachusettsNoYes, after 40 hours. Certain employees entitled to time-and-a-half for working on Sundays. 
MichiganNoYes, after 40 hoursEmployers with at least two employees
MinnesotaNoYes, after 48 hours 
MissouriNoYes after 40 hours. Employees of seasonal amusement or recreation businesses earn overtime after 52 hours. 
MontanaNoYes, after 40 hours. Students working seasonal jobs at amusement or recreational areas earn overtime after 48 hours. 
NevadaYes, after eight hours, if the employee’s regular rate of pay is less than 1.5 times the minimum wageYes, after 40 hours 
New HampshireNoYes, after 40 hours 
New JerseyNoYes, after 40 hours 
New MexicoNoYes, after 40 hours 
New YorkNoYes, after 40 for non-residential workers. Residential workers earn overtime after 44 hours. 
North CarolinaNoYes, after 40 hours. Employees of seasonal amusement or recreational businesses earn overtime after 45 hours. 
North DakotaNoYes, after 40 hours. Cabdrivers earn overtime after 50 hours. 
OhioNoYes, after 40 hoursEmployers that gross more than $150,000 annually
OregonNoYes, after 40 hours 
PennsylvaniaNoYes, after 40 hours 
Rhode IslandNoYes, after 40 hours 
VermontNoYes, after 40 hoursEmployers with at least two employees
WashingtonNoYes, after 40 hours 
West VirginiaNoYes, after 40 hoursEmployers with at least six employees at one location
WisconsinNoYes, after 40 hoursManufacturing, mechanical, or retail businesses; beauty parlors, laundries, restaurants, hotels; telephone, express, shipping, and transportation companies

Now that you know your state’s overtime laws, you can easily build an overtime policy according to those rules using FingerCheck. Not only can you set certain conditions for when overtime should calculate, you can also build as many rules as necessary to abide by your state’s overtime laws. For instance, California employers would need to create a daily overtime rule and a weekly overtime rule that would work together to fully cover their employees. As you can see in the rule box below, every overtime type that exists is listed, and once you finish building a rule you can build a new one. FingerCheck Overtime Rule box shown with conditions filled in to create a versatile overtime policy rule that works with state labor laws. The rule box also lets you input conditions around which your overtime policy should operate. For instance, you can enter the hours above which overtime should begin to take effect (for instance, for a weekly overtime rule you would write 40) and even set the hours maximum at which overtime should stop accruing. For full details, see our help desk article on how to set up overtime policies.

As you can see, setting up versatile overtime policies that comply with state and federal laws is easy with FingerCheck. Clients can call tech support or use our Help Desk to set up their policies, and businesses new to FingerCheck can sign up for a 30-day free trial.

Table Credit: Employment Law Firms

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Katherine is a New York-based digital writer who joined Fingercheck in 2015. She promotes Fingercheck through the power of the written word. She graduated from Fordham University with a B.A. in Communications and Media Studies with a focus on Journalism. Connect with her on LinkedIn

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